SINGAPORE — Private-hire drivers and delivery workers can soon be formally represented at the negotiation table with platform operators, in a move that will also facilitate the resolution of issues between the two sides.

This comes after the Government on Wednesday (July 12) accepted a set of recommendations by a tripartite workgroup to enhance representations for such platform workers. 

The eight recommendations cover areas such as how to formalise recognition for such representative bodies, the scope of issues that can be negotiated between the bodies and platform operators, and how to resolve disagreements.

Senior Minister of State for Manpower Koh Poh Koon on Wednesday said that the recommendations “create a win-win framework” for operators and workers, while taking into consideration flexibilities in platform work that make it distinct from regular employment.

“With representative bodies, platform workers can better negotiate for your interests,” said Dr Koh, who is also the advisor for the Tripartite Workgroup on Representation for Platform Workers that proposed the recommendations.

“Platform operators can also benefit from clear processes and rules for negotiation and more efficient dispute management so as to preserve the harmonious relationship between operators and workers.”

Addressing about 120 platform workers at the Lifelong Learning Institute, Dr Koh also gave updates on other measures previously announced to offer them better protection, namely in the areas of workplace injury compensation and ensuring their retirement adequacy.

The relevant legislations to enable the measures are set to be tabled in Parliament “soon”, said Dr Koh.

In a media statement on Wednesday, the Ministry of Manpower (MOM) said that the Government will work closely with tripartite partners, platform workers and platform operators to implement the recommendations from the second half of 2024.

WHY IT MATTERS

Enhanced representation for platform workers was one of three key areas identified by an advisory committee set up in 2021 to look into ways to better protect such gig workers, as they do not have similar protections enjoyed by regular employees.

Other moves announced in the same vein previously include the introduction of mandatory Central Provident Fund (CPF) contributions for younger workers to improve their retirement adequacy as well as workplace injury insurance protection.

A report by the Tripartite Workgroup on Representation for Platform Workers released on Wednesday said that the latest recommendations will provide avenues for workers to negotiate for their interests and for platform operators “to have clear dispute resolution processes”.

As of 2022, there are about 88,000 “regular” platform workers comprising delivery workers, private-hire car drivers and taxi drivers who use online platforms to match them with customers.

The recommended framework intends to cover these groups of workers, with no plans at the moment to extend them to other freelance or gig workers.

At the moment there are already associations under the National Trades Union Congress (NTUC) that advocate for issues related to platform workers.

However, as there is no process to determine that these associations have the mandate to be the voice of the workers, they can only engage with platform operators to raise feedback and concerns but are unable to formally negotiate collective agreements on behalf of such workers.

The recommendations by the tripartite workgroup outline three broad areas, namely ways for a body to receive a mandate to represent platform workers, the scope of negotiations between workers and operators, as well as a dispute resolution mechanism.

FORMING A REPRESENTATIVE BODY

• Recommendation 1: A representative body can obtain a mandate through either direct recognition by the platform operator or secret ballot

This recommendation takes reference from the representation framework for regular employees.

Having a mandate will allow the representative bodies and operators to put in place processes to formalise negotiated collective agreements.

The representative body must be registered with MOM before it can obtain a mandate to represent them.

• Recommendation 2: If a secret ballot is conducted, all platform workers are eligible except for those who are very new or inactive

Very new platform workers refer to those who sign up within three months before the representative body informs an operator of its intent to represent workers. Inactive workers refer to those who have not taken on any job on the platform over the past three continuous months.

This ensures that representation will be for relevant workers with “sufficient stake” in the outcomes, said the workgroup report.

• Recommendation 3: The voting will be conducted by MOM electronically

This is to ensure that voting will be accessible to as many workers as possible given the dispersed and transient nature of their work.

• Recommendation 4: The body must get majority support from workers who voted, with a minimum quorum of 20 per cent of eligible workers voting

This means that if 1,000 platform workers are eligible to vote, at least 200 of them must cast a vote for the ballot to be valid.

This threshold recognises the potential challenges to organise such mobile workers to vote as compared to regular employees.

SCOPE OF NEGOTIATION

• Recommendation 5: The worker representative bodies and platform operators should be given the flexibility to determine areas for negotiations

The workgroup recommends that the law not stipulate what the bodies and operators can or cannot negotiate on. Effectively, this means that any matter can be put on the negotiation table as long as both parties agree to do so.

If the two parties cannot agree whether or not an issue can be negotiated, MOM will conciliate the dispute.

• Recommendation 6: Instead of a prescriptive approach, negotiations will be guided by a set of principles agreed by the tripartite workgroup, namely:
  • Parties are committed to the business success of operators and the welfare of workers
  • Platform operators should be able to explain policies impacting workers such that the latter can make informed decisions. At the same time, operators do not need to divulge proprietary information
  • Preservation of flexibility that is valued by both platform workers and operators
  • While operators should retain the ability to encourage and maintain service standards, workers should have access to fair, timely and appropriate recourse

For example, on the issue of payment rates and job allocation, it should "focus on desired outcomes" for the workers, rather than "operational details such as matching algorithms".

In practice, this would mean that the operators are given the liberty to set their own rates and allocation processes to maintain competitive advantage, as long as these do not result in any form of discrimination among workers.

• Recommendation 7: Collective agreement must be certified at the Industrial Arbitration Court (IAC)

These make the agreements binding so that parties can be held accountable.

RESOLVING DISAGREEMENTS

• Recommendation 8: Unresolved collective disputes can be brought up to MOM for conciliation, or later on to the IAC for arbitration if conciliation fails

Currently there are no channels to facilitate dispute resolution between associations and platform operators.

Besides collective disputes, there may also be unresolved individual grievances between a worker and an operator, which representative bodies would be able to assist on.

Dr Koh said that the issue of worker representation in the platform space is a “complex” one given that it is not uniform.

The recommendations involve taking a framework that has worked “quite well” from the regular employment space and adapting it into the platform work business model while taking into account the differences that make the latter distinct, such as the flexible nature of the work, he said.

“Flexibility on both sides has always been something that both parties emphasise quite a lot, because that is the nature of why many of you enter this space in the first place,” said Dr Koh.

WHAT OPERATORS SAY

Operators largely welcomed the recommendations.

Mr Yee Wee Tang, managing director at Grab Singapore, said: "We appreciate that the tripartite workgroup took on board industry viewpoints, and we support these recommendations that will help facilitate discussions for platform workers and operators."

Spokesperson for taxi operator ComfortDelgro Grace Wu added: “We believe that having representation for these individuals contributes to improving their welfare, which is important for the industry's sustainability.”

Operations director at food delivery platform Foodpanda Singapore Darryl Chua said the changes will benefit the gig industry collectively.

"In particular, the set of principles that guide negotiations protects the interests of all parties in the ecosystem," said Mr Chua, who reiterated the firm's commitment to improving its riders' working experience.

"We look forward to deeper discussions around platform work and its challenges, such as access to safe and available parking when they conduct deliveries."

Meanwhile, goods delivery platform Lalamove said that it is supportive of initiatives that seek to enhance the safety and welfare of platform workers.

“Lalamove agrees that the representative framework may need to be reviewed to stay relevant in the midst of an evolving platform sector. We are keen to continue working with tripartite partners to ensure a growing platform economy within Singapore,” it added.